Presentation on theme: "Socio-Economic Impact. of Internet Development Dr"— Presentation transcript:
1 Socio-Economic Impact. of Internet Development Dr Socio-Economic Impact of Internet Development Dr. Piotr Stryszowski, OECD ITU Regional Workshop on ICT Indicators Sharm ElSheik, Egypt, 8-9 June 2012The views expressed in this presentation are those of the author anddo not necessarily reflect the opinions of the OECD or its Membership.
3 ContextSeveral existing studies focus on the Internet in the context of:its share of GDPits impact on GDP growth.It is important but is that all?
4 Lacking a structure to measure Experience shows us that we are lacking tools to understand the Internet economyPolicy makers need good indicators about the relative size and socio-economic impact of the Internet
5 Size of the Internet Economy (GDP) The share of GDP that is generated by Internet-related activitiesGDPWhat are the existing studies?BCG, McKinsey, Deloitte…
6 Size of the Internet Economy (GDP) BCG: UK Internet Economy worth GBP 100 million per year. 7.2% of GDPWeb sector delivers 3.4% of top 13 economies’ GDP
7 Dynamic, economic impact of the Internet What is the net share of additional GDP that is generated by all Internet-related activities across the economy.yesterdayGDPtodayThanks to the InternetWhat are the existing studies?Mostly academic studies; econometric analysis (Czernich, Lehr, Koutroumpis…)
10 Egypt: Cost of Internet shutdown Direct impact on GDPAbout USD 90 million in lost telecommunication revenuesOther impacts…Lost revenues of business relying on the InternetLoss of confidence/FDISocial costs…
11 Indirect, socio-economic impact The internet has some socio-economic impact that reaches beyond the GDP.Two main impact areas:• consumer surplus, and• broader gains generated thanks to the InternetThe InternetBroader gains:educationenvironmenttransparencysocial capital…Consumer surplushappy customers
12 Indirect impact Consumer surplus Little research has been done to quantify the economic impact on consumer surplus.Effects scattered across sectors / areas but potentially significant.Greestein and McDevitt (OECD, 2012) estimate a significant consumer surplus only for the Internet itself.
13 Indirect impact Broader impact areas OECD (2012), The Impact of the Internet in the OECD countries (upcoming Digital Economy Working Paper)The impact of the Internet on:EnvironmentEducationScientific researchHealthcareTransparencySocial capital formation…
14 ConclusionsMeasuring the size of the Internet economy is not straightforward. The measurement:Depends on the approach takenCan be performed at different levelsThe socio-economic impact of the Internet reaches far beyond the GDP.
15 Piotr Stryszowski Directorate for Science, Technology and Industry for further information>>> Contact usPiotr StryszowskiDirectorate for Science, Technology and IndustryOECD2, rue André-Pascal75775 Paris CEDEX 16FrancePhone: (+33)Fax: (+33)